{"id":4445,"date":"2015-03-24T16:27:08","date_gmt":"2015-03-24T22:27:08","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=4445"},"modified":"2020-12-21T16:50:47","modified_gmt":"2020-12-21T23:50:47","slug":"covenant-transportation-group-inc","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/","title":{"rendered":"Covenant Transportation Group Inc."},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.7.0&#8243; _module_preset=&#8221;default&#8221;][et_pb_row _builder_version=&#8221;4.7.0&#8243; _module_preset=&#8221;default&#8221;][et_pb_column _builder_version=&#8221;4.7.0&#8243; _module_preset=&#8221;default&#8221; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.7.0&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;]<\/p>\n<div class=\"blogDateTitleContainer\">\n<div class=\"blogDateTitle\">03\/24\/2015<\/div>\n<\/div>\n<div class=\"blogItem\">\n<p><a href=\"https:\/\/realfile.tax.newmexico.gov\/15-11_covenant_transportation_group_amended.pdf\">15-11<\/a><\/p>\n<p><em>On December 29, 2014, Decision and Order No. 14-45 was issued in this matter.\u00a0 On January 28, 2015, a Motion for Reconsideration was filed by the Department.\u00a0 The motion was granted, the original Decision and Order was withdrawn, and this Amended Decision and Order was issued.<\/em><\/p>\n<p><span>On February 12, 2014, the Department assessed the Taxpayer for corporate income tax, penalty and interest for the reporting period ending on December 31, 2012.\u00a0 The Taxpayer filed a protest to the assessment.\u00a0 The Taxpayer is the parent corporation of a group of affiliated corporations, three of which did business in New Mexico during the relevant period.\u00a0 Before 2012, all three entities filed New Mexico Corporate Income Tax (NM CIT) returns as separate corporate entities.\u00a0 Two of the corporations generated net operating losses on their returns before 2012.\u00a0 In 2012, the Taxpayer elected to file NM CIT returns as a combined consolidated group.\u00a0 On the combined consolidated group return, the Taxpayer claimed the net operating loss carryover first reported in previous years by two of the separate entities.\u00a0 The Department disallowed the Taxpayer\u2019s attempt to claim the net operating losses of the two entities in the 2012 combined consolidated group return.\u00a0 There are no disputes of fact is this matter.\u00a0 The three legal issues at protest are first, whether the Taxpayer, filing as a combination of unitary corporations, may claim a deduction for net carryover losses first reported by its wholly owned member filing on a separate corporate entity basis; second, if not allowed to claim the net operating losses, is the Taxpayer allowed to change its CIT reporting method back to separate entities; and third, should civil negligence penalty be abated. On the first issue, the Department provided argument, and the hearing officer agreed, that based on definitions of \u201cnet income\u201d and \u201cbase income\u201d in Section\u00a0<\/span>7-2A-2<span>\u00a0<\/span>NMSA<span>\u00a01978, and pursuant to Regulation 3.4.1.11\u00a0<\/span>NMAC<span>, the deduction the Taxpayer attempted to claim is not allowed.\u00a0 For the Taxpayer to return to separate filing, permission must be obtained from the Secretary of the Department.\u00a0 That permission has not been sought by the Taxpayer.\u00a0 In regard to the penalty, the Taxpayer provided a careful legal explanation as to why it believed it was entitled to claim the net operating loss deduction.\u00a0 This showed that the failure to pay resulted from a \u201cmistake of law made in good faith and on reasonable ground\u201d, as required under Section 7-1-69\u00a0<\/span>NMSA<span>\u00a01978, to rebut the presumption of correctness for the assessment of penalty.\u00a0 The penalty was ordered to be abated.\u00a0 The Taxpayer\u2019s protest was granted in part and denied in part.<\/span><\/p>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<p><a href=\"\/all-nm-taxes\/tax-decisions-orders\/\">Back to Tax Decisions &amp; Orders<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>03\/24\/2015 15-11 On December 29, 2014, Decision and Order No. 14-45 was issued in this matter.\u00a0 On January 28, 2015, a Motion for Reconsideration was filed by the Department.\u00a0 The motion was granted, the original Decision and Order was withdrawn, and this Amended Decision and Order was issued. On February 12, 2014, the Department assessed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"960","footnotes":""},"categories":[43],"tags":[],"class_list":["post-4445","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Covenant Transportation Group Inc. : All NM Taxes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Covenant Transportation Group Inc. : All NM Taxes\" \/>\n<meta property=\"og:description\" content=\"03\/24\/2015 15-11 On December 29, 2014, Decision and Order No. 14-45 was issued in this matter.\u00a0 On January 28, 2015, a Motion for Reconsideration was filed by the Department.\u00a0 The motion was granted, the original Decision and Order was withdrawn, and this Amended Decision and Order was issued. On February 12, 2014, the Department assessed [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/\" \/>\n<meta property=\"og:site_name\" content=\"All NM Taxes\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nmtaxationandrevenue\" \/>\n<meta property=\"article:published_time\" content=\"2015-03-24T22:27:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-21T23:50:47+00:00\" \/>\n<meta name=\"author\" content=\"admin@sks.com\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin@sks.com\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/\"},\"author\":{\"name\":\"admin@sks.com\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#\\\/schema\\\/person\\\/35a194272e02a09e62fc495bfe6c0532\"},\"headline\":\"Covenant Transportation Group Inc.\",\"datePublished\":\"2015-03-24T22:27:08+00:00\",\"dateModified\":\"2020-12-21T23:50:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/\"},\"wordCount\":495,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#organization\"},\"articleSection\":[\"Tax Decisions &amp; Orders\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/\",\"url\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/\",\"name\":\"Covenant Transportation Group Inc. : All NM Taxes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#website\"},\"datePublished\":\"2015-03-24T22:27:08+00:00\",\"dateModified\":\"2020-12-21T23:50:47+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/2015\\\/03\\\/24\\\/covenant-transportation-group-inc\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Covenant Transportation Group Inc.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#website\",\"url\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/\",\"name\":\"NM Taxation and Revenue Department\",\"description\":\"The Taxation and Revenue Department, charged with the task of collecting tax dollars and distributing them according to state law, answers to the Governor as part of the executive branch of state government.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#organization\",\"name\":\"New Mexico Taxation and Revenue Department\",\"url\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/wp-content\\\/uploads\\\/sites\\\/9\\\/2020\\\/10\\\/logo.png\",\"contentUrl\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/wp-content\\\/uploads\\\/sites\\\/9\\\/2020\\\/10\\\/logo.png\",\"width\":180,\"height\":66,\"caption\":\"New Mexico Taxation and Revenue Department\"},\"image\":{\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/nmtaxationandrevenue\",\"https:\\\/\\\/en.wikipedia.org\\\/wiki\\\/New_Mexico_Taxation_and_Revenue_Department\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/#\\\/schema\\\/person\\\/35a194272e02a09e62fc495bfe6c0532\",\"name\":\"admin@sks.com\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g\",\"caption\":\"admin@sks.com\"},\"sameAs\":[\"https:\\\/\\\/www.tax.newmexico.gov\"],\"url\":\"https:\\\/\\\/www.tax.newmexico.gov\\\/all-nm-taxes\\\/author\\\/adminsks-com\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Covenant Transportation Group Inc. : All NM Taxes","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/","og_locale":"en_US","og_type":"article","og_title":"Covenant Transportation Group Inc. : All NM Taxes","og_description":"03\/24\/2015 15-11 On December 29, 2014, Decision and Order No. 14-45 was issued in this matter.\u00a0 On January 28, 2015, a Motion for Reconsideration was filed by the Department.\u00a0 The motion was granted, the original Decision and Order was withdrawn, and this Amended Decision and Order was issued. On February 12, 2014, the Department assessed [&hellip;]","og_url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/","og_site_name":"All NM Taxes","article_publisher":"https:\/\/www.facebook.com\/nmtaxationandrevenue","article_published_time":"2015-03-24T22:27:08+00:00","article_modified_time":"2020-12-21T23:50:47+00:00","author":"admin@sks.com","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin@sks.com","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/#article","isPartOf":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/"},"author":{"name":"admin@sks.com","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#\/schema\/person\/35a194272e02a09e62fc495bfe6c0532"},"headline":"Covenant Transportation Group Inc.","datePublished":"2015-03-24T22:27:08+00:00","dateModified":"2020-12-21T23:50:47+00:00","mainEntityOfPage":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/"},"wordCount":495,"commentCount":0,"publisher":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#organization"},"articleSection":["Tax Decisions &amp; Orders"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/","url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/","name":"Covenant Transportation Group Inc. : All NM Taxes","isPartOf":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#website"},"datePublished":"2015-03-24T22:27:08+00:00","dateModified":"2020-12-21T23:50:47+00:00","breadcrumb":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2015\/03\/24\/covenant-transportation-group-inc\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/"},{"@type":"ListItem","position":2,"name":"Covenant Transportation Group Inc."}]},{"@type":"WebSite","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#website","url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/","name":"NM Taxation and Revenue Department","description":"The Taxation and Revenue Department, charged with the task of collecting tax dollars and distributing them according to state law, answers to the Governor as part of the executive branch of state government.","publisher":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#organization","name":"New Mexico Taxation and Revenue Department","url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#\/schema\/logo\/image\/","url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-content\/uploads\/sites\/9\/2020\/10\/logo.png","contentUrl":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-content\/uploads\/sites\/9\/2020\/10\/logo.png","width":180,"height":66,"caption":"New Mexico Taxation and Revenue Department"},"image":{"@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/nmtaxationandrevenue","https:\/\/en.wikipedia.org\/wiki\/New_Mexico_Taxation_and_Revenue_Department"]},{"@type":"Person","@id":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/#\/schema\/person\/35a194272e02a09e62fc495bfe6c0532","name":"admin@sks.com","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4863dfe2318b3e7d853b0b5f256f7314d15aee44b23f417a613581e223e91553?s=96&d=mm&r=g","caption":"admin@sks.com"},"sameAs":["https:\/\/www.tax.newmexico.gov"],"url":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/author\/adminsks-com\/"}]}},"_links":{"self":[{"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/posts\/4445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/comments?post=4445"}],"version-history":[{"count":2,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/posts\/4445\/revisions"}],"predecessor-version":[{"id":4447,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/posts\/4445\/revisions\/4447"}],"wp:attachment":[{"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/media?parent=4445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/categories?post=4445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/wp-json\/wp\/v2\/tags?post=4445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}